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Hiring Sales Staff | Commission only sales people?

I have a small marketing agency with a focus on SEO related activities. Currently I have no employees...i AM the company. But I do want to grow. I am looking into hiring a couple of family members as sales people to help me grow my business.

My typical client pays between 500-1000 per month and almost all are local businesses. How could I provide a generous commission only sales structure for my family members who help me out? Any thoughts? ''x' percentage per month etc?

and made it quite humorous and got an okay response out of it. We should of made it easier for someone to refer a client to us, but we didn't. Your "sales" people do not need to know what you charge or negotiate the deal themselves. They need to be compensated for referring a client and you engaging in a contract.

We also have a referral program in place. It was designed for our customers, but our employees receive the same benefits.

If you are looking for the focused effort you get from having an employee commission only is certainly one route you can go.

I suggest thinking about:

How many clients can you realistically handle in a month.

How many clients does your salesperson need to close.

At that average $500-$1000/mo/client how much commission do you need to pay for it to be worth someone's time to take this on as a job?

I would pay commissions on an on going basis meaning you pay your employee when your clients pay their bills. You need someone that has the ability to do account management to retain existing clients as well as close new deals. "A bird in the hand is worth two in the bush."

There are a million ways to set up a sales department. If you'd like to bounce ideas off of me, we can take this private.

Hmmm sounds like a good idea, but hopefully your family isn't hurt when they get turned down by prospects. I would probably offer a residual income to my own family members. The bigger the account they land, the more passive income they can get. If they are generating you $10K per month and you give them $3K month, how incentivising would that be?

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